Buying property is a pretty safe investment, as property prices don’t normally just drop in value. Plus, it’s easy to make passive income with the property. Investing in an empty land, on the other hand, isn’t as popular. If that’s the case, then why buy land? The short answer: purchasing land is a great investment. Here’s why you may want to consider investing in land yourself.
You Don’t Need That Much Land to Get Started
Empty land is much cheaper than buying an already-built property. If you find the right piece of land, you may even be able to purchase it without having to worry about getting a mortgage, which means you won’t need to pay off any interest. From there, you can sell for a bit more than you bought, which will leave you with more money for your next investment. You can keep that cycle going until you’re getting high-value plots with high ROIs.
It Is Flexible
If you buy a home, that’s what you get. That home isn’t suddenly going to turn into a business, an office, or an apartment building. At least, not without a lot of work. Alternatively, with an empty plot, you can turn that piece of land into anything that can fit on it. You don’t even need to put a building on it if you don’t want to. This flexibility makes land valuable, as buyers can use it for whatever they want instead of being limited to what’s already there.
Land Typically Appreciates Over Time
If you’ve picked a good location, you’re nearly guaranteed to have your land appreciate over time, meaning that it will only go up in value. It’s rarer for land to go down in value rather than appreciate. So, if you’re smart about where you purchase the plot, you can expect it to rise in value pretty dramatically.
When it comes to purchasing land, location is key. Always make sure to research the region to see if there are any planned developments and how other areas are doing.
You Don’t Need to Do Anything with the Land
Investing in an already-built property often comes with new construction and renovations to make it ready for re-sale and passive income. With an empty plot, you don’t really need to do anything. If you want to make an investment without worrying about the hassle of building new structures or fixing existing problems, then the land is a great choice. It will still go up in value just sitting there.
Land Is a Limited Resource
New homes and buildings can continue to be constructed over time, so investors and buyers aren’t limited to what’s already available on the market. On the other hand, people can’t just create more land, which makes it a limited resource. Holding a nice piece of land, such as a waterfront lot in an up-and-coming region, for the long term and only selling once there are a few empty plots left is a sure way to gain on your investment.
Always Consult a REALTOR®
While you may assume real estate agents are only helpful when purchasing already-built properties, that’s not true at all. REALTORS® is experienced with real estate markets of all kinds, including land. A real estate agent will be able to advise you on why buying land is a good investment, what makes different plots of land value, and which plots you should consider investing in. It’s especially important to get professional help as a first-time buyer!
Contact one of our Fully-licensed REALTORS® today!
Looking for an experienced REALTOR® that specializes in real estate across Wellington County? At Royal LePage Royal City Realty we are focused on helping you unlock your future.